The total amount of BGEOs to be issued is estimated to be 300M. Although it is publicly announced that new BGEOs will be issued through POW-type mining, we believe that information should be disclosed regarding the schedule for the issuance of up to 300M BGEOs.
BGEO is designed so that each block takes approximately one minute to generate, and currently 50 BGEOs are newly issued for every block generated. （Currently, 50 BGEOs are issued for every block generated, or approximately 72,000 BGEOs per day.)
We would like to see the information on how many half-lives will occur for each block generated and how many half-lives will occur in total (half-life schedule), and an outline on total issuance volume of 300 million BGEOs. We believe this will increase transparency about the BGEO project and help build a fair relationship with BGEO holders.
If we assume that the half-life of BGEO is about 4 years as in Bitcoin, since the time required to generate the block is one-tenth that of Bitcoin, BGEO’s half-life will occur every 2,100,000 blocks generated. (In the case of Bitcoin, one block is designed to be generated in 10 minutes, and it reaches half-life every 210,000 blocks, which corresponds to a period of about 4 years.)
If we assume that the number of new issues by block generation is halved each time the half-life is reached, i.e., 50 BGEO, 25 BGEO, 12.5 BGEO, 6.25 BGEO, and so on, the new BGEO issuance schedule would be as follows：
- 105 million BGEOs are issued between block #1 and #2,100,000 (cycle 1),
- 52.5 million BGEOs are issued between block #2,100,001 and block #4,200,000 (cycle 2),
- 26.25 million BGEOs are issued between block #4,200,001 and block #6,300,000 (cycle 3),
- 13.125 million BGEOs are issued between block #6,300,001 and block #8,400,000 (cycle 4),
- 6.5625 million BGEOs are issued between block #8,400,001 and block #10,500,000 (cycle 5),
and the sequence continues. The number of BGEOs issued will exceed 100 million by the end of Cycle 1 and 200 million by the end of Cycle 5.
If the number of half-lives were set to 33, which is same as Bitcoin, the number of BGEOs issued would be less than 210 million at the end of cycle 34 and reach 210 million by the end of cycle 35. After this point, approximately 0.0122 BGEOs would be newly issued each cycle, and it would take an astronomical period of over 7.36 billion cycles for the remaining 90M BGEOs to be issued, making it unrealistic to think that the BGEO issuance volume would reach the total issuance volume of 300 million.
Decentralization of BGEO mining hash rates
Currently, BGEO mining is kept private and only the BGEO Foundation and related companies participate in mining. Although the BGEO blockchain is decentralized, its management structure is centralized. It is understandable that while the hash rate is small, the BGEO blockchain will start with a centralized structure for security reasons. We have heard that the plan is to gradually move away from this structure and move to decentralized management. It would be more reassuring for BGEO holders, partner companies, and other stakeholders if the plan for decentralization is clearly stated.
Strictly speaking, this needs to be considered as the hash rate grows, but here is an example;
Let us assume that the period between block #1 and #2,100,000 (Cycle 1) is defined as the period of transition from a structure similar to a private type in which only entities involved in the BGEO project participate in mining to a consortium type organizational structure that recognizes certified companies.
Let us assume that the period between block #1 and #2,100,000 (Cycle 1) is defined as the period of transition from a structure similar to a private type in which only entities involved in the BGEO project participate in mining to a consortium type organizational structure that recognizes certified companies. Then, between blocks #2,100,001 and #4,200,000 (Cycle 2), the consortium-type organizational structure is terminated, subject to hash rate growth, and this period will be Half-life times（Number of issuances is halved for every 2,100,000 blocks generated defined as the period in which mining is to be opened to the public. Lastly, the period between block #4,200,001 and #6,300,000 (Cycle 3) will be defined as the period during which full public opening is achieved.
The allocation of BGEO holdings and the lock period and usage of each holder
BGEOs use the POW mining model and are newly issued each time a block is generated. Currently, mining is not open to the public and only the BGEO Foundation and related companies participate in mining. According to the beta version of the BGEO Explorer, as of September 3, 2024, there are approximately 14 million BGEOs in circulation. (The reference URL is – https://www.bgeoex.com/supply) The BGEO Foundation has the authority to manage all of this. Therefore, we believe that it is necessary to disclose information on how BGEOs issued under the plan will be marketed in order to show fairness to BGEO holders and the businesses that deal with BGEOs.
If BGEOs issued under the foundation’s control were to circulate in the market without a plan, the market price might go downward, and BGEO holders would be more likely to quit using their BGEOs and relinquish them due to a sense of insecurity. Therefore, it is important for the future of BGEOs to show how BGEOs are planned to be released and distributed in order to give peace of mind to BGEO users.
The Foundation roughly needs to indicate how the BGEO will be allocated until the mining is opened to the public. This means the allocation of certain percentage of BGEOs to each sector. It will also be useful to provide a lock period for the BGEOs in each sector. Or, of the BGEOs allocated, limit the number of BGEOs that can be used in a given period of time and publish reports periodically, showing the actual uses and quantities of BGEOs used by each sector. In this way, the BGEO project can be more transparent and fairer to the market.
Bounties and app collaboration 3%
・Community development 2%
・Yearly expenses 10%
・Ecosystem 80%
・Team & Founder 5%
Total 100%
When companies and individuals other than the BGEO Foundation begin to participate in mining, the BGEOs they acquire will not be able to be managed by the Foundation, and all of them will become BGEOs that are distributed to the market.
Therefore, it would be desirable 1. to consider the distribution ratio as shown in the above figure against the quantity of BGEOs that the Foundation can manage, 2. to pr esent a plan for releasing additional BGEOs and how they will be released to the ma rket, and 3. to submit reports on the actual releases on a regular basis.
Assuming that only the BGEO Foundation and related companies would conduct mining until the 2,100,000th block is generated, and the first half-life is reached, they would manage 105 million BGEOs, and the distribution volume would be as follows:
Bounties and app collaboration 3.15 million
・Community development 2.1 million
・Yearly expenses 10.5 million
・Ecosystem 84 million
・Team & Founder 5.25 million
Total 105 million
We will present you a separate report on how to use the BGEO for each item, and on
proposals for locking periods, etc.